HAS 6400 Session Six Dr. Burton

“A strategy that cannot be evaluated in terms of whether of not it is being achieved is simply not a viable or even useful strategy.” C. H. Roush and B. C. Ball

Exhibit 11 – 1 (4 th ed): Strategic Fit Strategy Directional strategies Adaptive strategies Market entry strategies Competitive strategies Service Delivery Strategies Pre-service Point-of-service After-service Support Strategies Culture Structure Strategic Resources Unit Action Plans Objectives Actions Timelines Responsibilities Budgets Strategic Leadership Strategic Leadership

Exhibit 11 – 2 (4 th ed): The concept of control Measure Actual Performance Measure Actual Performance Compare Objectives With Performance Compare Objectives With Performance Determine Reasons For Deviation Determine Reasons For Deviation Take Corrective Action Take Corrective Action Set Objectives Or Redefine Objectives Set Objectives Or Redefine Objectives

The Characteristics of Control Based on accurate, relevant, and timely information Directed at controlling only the strategy-critical elements Flexible Cost-effective Simple and easy to understand Timely Emphasize the exceptions

Manage Simply “Everything should be made as simple as it possibly can, no simpler.” Einstein

Less management is better than more management Managing is controlling, but controlling may not be managing Create teams and promote teamwork by teaching the team how to manage itself Minimize rules, policies, and procedures Ask teams to think

Broad strokes are better than narrow strokes Vision and future orientation are essential Avoid micromanagement Be a leader-management without leadership is bureaucracy

Processes are not ends in themselves but are viewed that way over time The objectives are the ends, focus on the objectives Encourage the constant questioning of “why is it done this way?” and reward innovation and change Never permit “Its always been done this way?” to remain an acceptable process.

Managers will never get it quite right Objectives, needs, influences, solutions, and systems constantly evolve Interpret striving for perfection as continuous improvement Never make perfection a prerequisite for progress

One size does not fit all Although some order is necessary, blind application of one solution or pattern leads to a dysfunctional workforce When choosing between centralization and decentralization, customize to fit the situation. When in doubt, decentralize Be aware that there are many problems with common systems such as personnel evaluations, salary ranges, etc.

All solutions are temporary Remember that “necessity is the mother of invention” Don’t work so hard for closure to a problem, be open to and encourage change and innovation

Do what is best for each individual and the organization will prosper Usually what is best for the organization is the sum of what is best for the individuals in the organization Pay employees as much as possible Encourage and allow people to do what is best for themselves Encourage learning and fun

Practice “one level” management Deemphasize organizational hierarchy Treat everyone as a peer Peers can and will share ideas, opinions, and solutions Remember that you – as the boss – are just not that important The team deserves respect Casual is better than formal

Give everyone a piece of the performance Ownership is powerful Create opportunity for everyone to “keep what they don’t spend” Eliminate job descriptions, except for “do what is needed to get the job done and, in the face of adversity, find a way to achieve the objectives.

Make the manager’s job harder and other’s easier Identify and satisfy internal customers Remember subordinates are customers too Constantly seek to identify barriers View the job as that of removing barriers, whatever they may be

Find happiness Happiness, a good attitude, and optimism are contagious Take a break and live one once in a while Sometimes think rather than do; staring out the window can be productive Source: Andrew Rucks & Peter Ginter

Exhibit 11 – 3, 4 th ed: The concept of control and a framework for strategic control Set objectives or redefine objectives Measure performance Compare performance with objectives Determine reasons for deviations Establish or confirm performance Standards – Mission, Vision Values, and Goals Measure organizational performance Compare performance with standards Are strategic assumptions still valid? External factors Internal factors Are the Directional Strategies still appropriate? Are the Adaptive Strategies still appropriate? Are the Competitive Strategies still appropriate? Are the Market Entry Strategies still appropriate? Are the Implementation Strategies still appropriate? Take Corrective Action Concept Control Strategic Control Take Corrective Action

Perspective Resistence to Change Stage one: Resistance Stage Two: Passiveness Stage Three: Convince Me Stage Four: Hope Stage Five: Involvement Stage Six: Advocacy

Perspective th Ed. 1950s Theory “Y” Management by Objectives Quantitative Management Diversification 1960s Managerial Grid T-Groups Matrix Management Conglomeration Centralization/Decentralization 1970s Zero-based Budgets Participative Management Portfolio Management MBAs 1980s Theory Z One-minute manager Organization Culture Intrapreneuring MBWA (Management by Wandering Around) TQM/CQI 1990s Strategic Thinking Customer Focus Quality Improvement Reengineering Benchmarking 2000s ?

“This, then, is the basic meaning of a learning organization – an organization that is continually expanding its capacity to create its future. Peter M. Senge The Fifth Discipline